Tucson, Ariz.

Weekly Legislative Update - June 24, 2019

Last week, Ways and Means Committee approved and reported to the House H.R. 3301, "Taxpayer Certainty and Disaster Tax Relief Act of 2019," as introduced by Chairman Neal.

The vote was 25-17 along party lines. Several amendments were debated but none were approved.

Should H.R. 3301 become law, WOTC will be extended one year to the end of 2020, Indian Employment Tax Credit extended retroactively from end-2017 to end-2020, and Empowerment Zone tax incentives extended retroactively from end-2017 to end-2020.

Recall that cost of this bill is almost totally offset by modification of the Estate and Gift tax, specifically reduction of the Unified Credit against Estate Tax, raising revenue of $37.6 billion, with result that, overall, the bill loses $4.9 billion which is added to the deficit. TIA strongly opposes this part of the bill.

It's likely the bills marked up will be brought to the floor and passed separately. If so, the extenders bill, as offset, is in good shape for passage. This doesn't mean, however, that the bill will go to the floor soon, or at all.

TIA Writes Letter to Leadership Against Estate Tax Provisions

Dear Chairman Neal and Ranking Member Brady,

On behalf of America's family owned and operated businesses, we are writing to express concern with the recently proposed extenders package, "The Taxpayer Certainty and Disaster Relief Act."

This legislation rolls back the positive changes made to estate, gift, and generation skipping taxes in the Tax Cuts and Jobs Act.

This proposed change pulls the rug out from family owned businesses and farms that have recently adjusted their succession plans to reflect the new law and causes more uncertainty for businesses hoping to pass to the next generation.

The bill in its current form more than doubles the amount of taxpayers subject to the death tax starting in 2023.

This year, over 150 small business and advocacy organizations wrote Congress in support of Congressmen Jason Smith (R-MO) and Sanford Bishop's (D-GA) Death Tax Repeal Act, H.R. 218.

To many organizations representing family owned and operated businesses, rolling back the positive changes made in the Tax Cuts and Jobs Act is unacceptable.

The Office of Advocacy is hosting four Regulatory Reform Roundtables during the month of July. They will be in Anchorage, Alaska on Wednesday July 10, followed by Bangor, Maine, North Conway, New Hampshire, and Burlington, Vermont, during the week of July 15.

Advocacy hosts these Regional Regulatory Reform Roundtables across the country in an effort to hear directly from small businesses about what regulations concern them the most.

This is an opportunity for small business owners and stakeholders to meet in-person with Advocacy senior staff.